Trillion Dollar Platinum Coin Scheme

Last week the news was all aflutter about the "Trillion Dollar Platinum Coin" that should be minted by the Treasury Secretary so that Dems and Repubs can avoid having a rational discussion about debt limits.

Of course, this seems like a desperate move....floated by Democrats who seem incapable of cutting anything.

When do nations start floating desperate ideas?....when their financial condition becomes desperate.

Jan 14, 2013
The $1-Trillion Coin Scheme - A Sign of Desperation The folks in Washington DC have had tremendous success in maintaining the illusion that our national budget is on a sustainable path. As we near the breaking point, the Federal Reserve and U.S. Treasury have been forced to use more inventive tactics to keep the American economy from collapse. Even though the Fed is buying 90 percent of our nation's debt, and this would be called debt monetization in other settings, they have been able to maintain calmness by simply calling it "quantitative easing." The latest fiscal gimmick being talked about is the issuance of a $1-trillion coin in order to get around the national debt ceiling that is coming up next month. Since congressional Republicans are vowing to block any increase in the debt ceiling that doesn't include spending cuts, the White House could legally instruct the Treasury Department to produce a platinum coin with a face value of $1 trillion and give this to the Federal Reserve. The Fed would then credit the Treasury’s account with a trillion dollars that could then be applied to the general budget. One supporter of this idea is New York Times economist Paul Krugman, who says it deserves consideration in that it could help solve one of our country’s biggest economic issues. “By minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling – while doing no economic harm at all,” Krugman wrote. When White House press secretary Jay Carney was asked about the platinum coin option to avoid the debt ceiling, he offered the Obama administration's support in a roundabout way. He was asked three times to weigh in on the plan, and each time he refused to say anything negative about it. I don't understand why they focused on $1 trillion as the face value for the coin. If a mint is going to produce this coin, there will most likely be more than one. Just 100 of them would be equal to the global GDP. If I was pushing this scam, I would suggest making them have a $10-billion face value. A trillion dollars worth of these coins would fit nicely into a small bag that could be easily presented to Federal Reserve Chief Ben Bernanke. The liberal media has been incredibly supportive of this nutty idea. Normally, when something is proposed that falls outside the realm of rational thinking, a healthy dose of critical thinking is called for. I watched three major networks lay out this scheme without allowing for any rebuttal. The plan is so crazy it deserves the type of mockery that I found on various financial blogs. Charles Hugh-Smith of OfTwoMinds had this comical comment: "The $1 trillion platinum coin saga took a surprising turn as the Central Bank of Mars has expressed interest in buying 100 of the proposed coins." There is another coin in the news that shows how a growing number of people are becoming aware of the inflation of risk. In the first week of January, there has been a massive surge in sales of silver American Eagles from the US Mint. The sales of these coins hit a record 3.94 million ounces, already surpassing the entire December total of 1.64 million ounces. If the United States of America mints a trillion-dollar coin, it would be a clear signal to our creditors that America is broke. Once faith in the dollar is lost, the financial charade is over. The Chinese and Japanese both have about $1 trillion in our Treasury bonds. I'm sure they are horrified to learn that we are giving serious consideration to a plan that would devastate the value of their net holdings. Our monetary system is based almost entirely on faith. The only thing backing our fiat money is the ability of our government to print more paper currency. Once the trust in the dollar is broken, we will eventually see the dollar decline in value. It's is no great secret to the holders of our debt that America is running a Ponzi scheme. There is no alarm on their part because they generally believe they can sell their bond holdings if the market turned sour. When people realize the U.S. is not a good investment, the change in sentiment will likely occur instantly, creating panic selling. The need for quick action ahead of the crowd reminds me of the 2003 fire at the Station nightclub that killed 100 people and injured over 200 others. A set of pyrotechnics ignited flammable sound insulation foam in the walls and ceilings surrounding the stage. Once the fire started, it only took 1 minute before the whole club was filled with deadly black smoke. Because the vast majority of people initially stood around watching the fire grow for the first 40 seconds, it only took 10 seconds for someone to move from the front of the stage to close enough to the exit to ensure their survival. We've had years to watch the hyperinflation fire grow in size with the issuance of a mountain of federal debt. Once a dollar collapse starts, history shows that the value of a currency can be largely wiped out in just a few days. I have several friends who have their entire life saving in government debt assets, and they refuse to take measures to protect themselves because they have an unwavering faith in the dollar. To be truly protected in this world, you have to be a believer in Jesus Christ. A stash of gold, guns, and groceries may rescue you from an economic meltdown, but it can't save you from the coming Tribulation judgment. The only cure for the curse of sin is faith in Son of God. “In my Father’s house are many mansions: if it were not so, I would have told you. I go to prepare a place for you. And if I go and prepare a place for you, I will come again, and receive you unto myself; that where I am, there ye may be also” (John 14:2-3).

Here;  http://raptureready.com/rap16.html

Funny how many prophecy watchers are saying the same exact things, just like this guy says, "Once faith in the dollar is lost, the financial charade is over."

Did you also see that this writer believes America is running a Ponzi scheme?

Friends, now is the time to stay anchored to The Rock of Jesus Christ by staying deep in God's word and the promises told there.  EVERYTHING in this life as we know it could vanish like a dream...and if our faith has been in money and possessions....what good will we be if it all washes away like sinking sand?

Even so...Come Lord Jesus!